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ISNPY or TD: Which Is the Better Value Stock Right Now?

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Investors interested in Banks - Foreign stocks are likely familiar with Intesa Sanpaolo SpA (ISNPY - Free Report) and Toronto-Dominion Bank (TD - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Intesa Sanpaolo SpA has a Zacks Rank of #2 (Buy), while Toronto-Dominion Bank has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that ISNPY likely has seen a stronger improvement to its earnings outlook than TD has recently. But this is just one factor that value investors are interested in.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

ISNPY currently has a forward P/E ratio of 7.57, while TD has a forward P/E of 9.53. We also note that ISNPY has a PEG ratio of 0.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TD currently has a PEG ratio of 1.54.

Another notable valuation metric for ISNPY is its P/B ratio of 0.96. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TD has a P/B of 1.32.

These metrics, and several others, help ISNPY earn a Value grade of B, while TD has been given a Value grade of F.

ISNPY has seen stronger estimate revision activity and sports more attractive valuation metrics than TD, so it seems like value investors will conclude that ISNPY is the superior option right now.


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